Last week, DavorCoin, an altcoin with a lending program similar to BitConnect, announced it would end its lending program. And, just like BitConnect, it refunded people who participated in lending by giving them back their investment in it's coin, this time DAV coin, rather than in BTC (Davor was nice enough to add 10%). The problem? DAV, which at one point was worth close to $200, had been steadily declining for weeks, and people had ALREADY lost on their investment. Making matters worse, people reportedly were locked out of the trading platform, meaning they were stuck with this declining coin.
While I certainly hate for anyone to lose money in an investment, only to be left feeling scammed. However, while perusing the web, I saw several stories of seemingly reasonable people complaining that they had lost money on both BitConnect AND DavorCoin. I saw one even claim they lost money on other defunct lending platforms.
Which leads me to this question: HOW? How is it possible for a reasonable adult to lose money on one platform, only to try again in another, extremely similar platform? Here's your answer: It's either GREED, IGNORANCE, or just flat out STUPIDITY.
People love to prey on two people: desperate and greedy people. There are those that desperately need a financial miracle. They need an increase in funds fast. Then there are those that are just plain greedy, and will ignore all signs of danger and even their common sense to get a quick buck.
BitConnect was appealing to both people. A simple enough lending program, that even though there was no proof of any trading bot, offered high interest rates that compounded daily and just enough people making money to bring in thousands of people. They ignored the warning signs, the numerous people saying it was a scam, USI Tech closing its lending in the US, even the cease and desist issued by Texas. Then, BOOM! It was gone, and all its investors were left with were highly devalued BCC coins.
So, you'd think people would've learned a valuable lesson, right? Wrong. The next question was simply, "I wonder how long I can lend with DavorCoin?"
See, the issue with these cryptocurrencies and ICOs isn't the coin or company itself. There's going to be bad investments and scams in all forms of business. The problem is the community. Too many people that are ill-informed and too many people that are impatient and greedy. They saw cryptocurrencies boom in 2017 and jumped on the train, thinking they'll be rich in a few months. They had no idea what they were investing in, and those that did know still did it anyway, thinking they could beat the system.
Believe me, I totally understand. If I knew of a coin that was 5 cents today and will be 5 dollars in a few months, I'd buy it up by the tons! But you can not make ANY investment, whether it's cryptocurrency or the stock market, with no knowledge of what you're getting into and investing more money than you can afford to lose.
Don't blame Trevon James or Crypto Nick. Ignorance, greed, and stupidity are only the faults of those who possess them.